Pretty much just this question. Why does Shell have a low stock price compared to Apple despite having more revenue?
In: Economics
Stock price isn’t an indication of a company’s worth. Market cap is. Market cap is Outstanding Shares multiplied by stock price.
A company that has 100 outstanding shares valued at $1 each, has a market cap of $100.
A company who has a stock price of $100 per share, but only has 1 share outstanding has a market cap of $100.
In this scenario, both companies are valued the same, despite the disparity in stock price.
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